Flextech sales arm goes it alone

The sales arm of Telewest programming division Flextech, which sells advertising space on behalf of digital channels such as Play UK, Trouble and UK Gold, is being spun off to form a new company.

Interactive Digital Sales will sell advertising across all NTL, Telewest and UKTV channels, including web and broadband services.

It will also tout for outside business to add to existing sales for clients Extreme Sports channel and Premium TV's 78 football websites.

By distancing itself further from content arm Flextech, IDS hopes to capitalise on the renewed interest in broadband content, attempting to get advertisers interested in Telewest's Blueyonder service and NTL's broadband content.

"I believe we will continue to be a leading edge company through our dedication to offering convergent, integrated solutions to meet the increasing complexity of advertisers' marketing objectives," said Mark Howe, the managing director of the new operation.

"By establishing ourselves as an independent company we will reap the benefits of our unique convergent position," he added.

When Telewest announced last year that it was to handle sales for NTL's broadband and web services the move was hailed as evidence of closer co-operation between the two indebted cable giants.

The decision to establish the sales operation as a separate company is also dictated by Flextech's need to replace subscription revenues for its channels.

Digital channels are set to receive less money from BSkyB and ITV Digital as their contracts are renegotiated, hence the need to increase revenues from advertising sales.